MUDO POULTRY LI M ITED

Business Plan
Breeding
Multiplication
Hatcheries
 Table of Contents
1.0 Industry Overview................................................................................................1
2.0 Executive Summary .............................................................................................2
3.0 Our Products and Services ...................................................................................2
4.0 Vision Statement ..................................................................................................2
5.0 Mission statement ................................................................................................3
6.0 Production, Productivity and Farming System ....................................................3
7.0 Marketing, Trade and Investment Opportunities .................................................3
8.0 Organization Structure .........................................................................................5
9.0 Job Creation and opportunities ............................................................................5
10.0 Supply of Poultry Inputs ....................................................................................5
11.0 SWOT Analysis .................................................................................................6
11.1 Strength: ............................................................................................................................... 6
11.2 Weakness: ............................................................................................................................. 6
11.3 Opportunities: ....................................................................................................................... 6
11.4 Threat:................................................................................................................................... 7
12.0 Market Analysis .................................................................................................8
12.1 Market Trends ...................................................................................................................... 8
12.2 Our Target Market ................................................................................................................ 8
12.3 Our competitive advantage ................................................................................................... 8
13.0 Sales and Marketing Strategy ............................................................................9
13.1 Sources of Income ................................................................................................................ 9
13.2 Project Capacity and Sales Forecast ..................................................................................... 9
13.3 Marketing Strategy and Sales Strategy................................................................................. 9
13.4 Publicity and Advertising Strategy..................................................................................... 10
13.5 Our Pricing Strategy ........................................................................................................... 10
14.0 Our Payment Options .......................................................................................10
15.0 Startup Expenditure (Budget) ..........................................................................11
16.0 Generating Startup Capital ...............................................................................12
17.0 Sustainability and Expansion Strategy ............................................................12
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18.0 Check List/Milestone .......................................................................................13

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1.0 Industry Overview
Poultry farming is the form of animal husbandry which raises domesticated birds such as
chickens, ducks, turkeys and geese to produce meat or eggs for food. Poultry most chickens are
farmed in great more than 60 billion chicken are killed for consumption annually.
A chicken hatchery is a facility where chicken eggs are hatched under artificial conditions.
Chicken hatchery business is under Poultry Raising industry which consist of businesses that
operate hatcheries to produce chicks DOC’s( daily old chicks).
The Poultry Raising industry has experienced positive trends in the demand for artificially
hatched chicks and eggs. Of course, increasing health consciousness among Tanzania meat
consumers has boosted consumption of white meat such as chicken, which is also more
affordable than beef or pork.
In Tanzania, the poultry sector is still at infantry stage both in the commercial and traditional
subsectors. However, poultry farming does play a pivotal role in both urban and rural settings in
terms of food security, source of income, manure and meeting social obligations such as dowry
and rituals. The growth of the poultry sector is steady. Indigenous chickens are mainly raised by
rural dwellers and contribute to almost 100% of poultry meat and 20% of eggs consumed in the
rural and urban areas respectively, while layers and broilers are raised by urban dwellers. The
commercial poultry industry includes the breeder farms, hatcheries, poultry farms (layers and
broiler farms), traders and processors. Poultry as a source of protein has a competitive advantage
over other livestock such as cattle, goat, sheep, and pig due to the fact that it can be produced in
large quantities within minimum space and time. As eating habits are changing from red meat to
white meat and the economy is growing, disposable income is increasing and the demand for
poultry products is likely to keep increasing. The major barriers facing new entrants in the
industry include the competitive nature of a contract based income system, the medium level of
investment required and of course compliance with various environmental regulations.

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2.0 Executive Summary
Mudo Poultry Limited is a licensed poultry farm to be located in Kisarawe District, Pwani
Region -Tanzania. Basing on market research and feasibility studies we have secured 12 acres of
land for the initial establishment of Poultry farm. This farm is expected to be a standard
commercial poultry farm that is expected to leverage the vast opportunities available in the
poultry industry, to contribute our quota in growing the United Republic of Tanzania (URT)
economy, in national food production.
Mudo Poultry is well positioned to become one of the leading supplier of broilers and layers
chicks in Tanzania, with the best machines and qualified man power to run the business.

At MudoPoultry our customer’s best interest will always come first, and everything we do will
be guided by our values and professional ethics. We will ensure that we hold ourselves
accountable to the highest standards by meeting our client’s needs precisely and completely.
Mudo Poultry is a private registered commercial company owned by SONG JIANXIONG
(36%), CHEN MENGYAN (32%) and MAO XIAOJIANG (32%) who are expected to be initial
financers of the business.

3.0 Our Products and Services

Mudo Poultry is a standard commercial business company which is committed to follow rules
and regulations governing poultry industry in Tanzania at a WIN-WIN situation. Therefore our
main products and services offered will be to supply broilers and layers chicks.

4.0 Vision Statement

Our vision as a company is to become one of the leading broilers and layers chicks suppler in
Tanzania by the year 2025.

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5.0 Mission statement
Customer satisfaction and employee empowerment are the key element of our corporate
company philosophy, we are committed to provide safely working environment and
employee growth opportunities through commitment to fulfill quality and deliverable
obligation to our customers in poultry industry.

6.0 Production, Productivity and Farming System

The population of chickens (2018/2019) is estimated at 79.1 million, of which 38.5 million are
indigenous (backyard chicken) and the remaining 40.6 million are commercial poultry (Budget
Speech, 2019). Among the existing 4.6 million livestock households in Tanzania, 3.7 million
households keep chicken. Furthermore, the poultry industry has a potential to employ a large
number of people, especially the youth who are currently facing unemployment. There is ample
land for growing grain and soya to provide enough raw materials to be self- sufficient. The
current population of chicken is estimated from the National Panel Survey as per table below.
Population Estimates based on Reference Projected Projected Projected
2012 2008 2010 2012 Annual population in Population in Population in Population
Millions growth 2012 Million 2017 Million 2018 Million In2019
rate Millions
36.5 46.1 53.6 54.3 0.7 36.5 68.9 74.8 79.1
Source:Tanzania Livestock Maste rPlan,2018

7.0 Marketing, Trade and Investment Opportunities

Traditional poultry encompasses about 70% of producers while commercial takes about 30%.
However, 60% of eggs are consumed away from home (restaurants, hotels) while the rest (40%)
are consumed at home. There are several market actors who are involved in the chicken egg
value chain; poultry producers, village egg collectors, small and big traders, restaurants and
hotels.
Tanzania is a member of the Southern African Development Community (SADC), East African
Community (EAC), and Tripartite Free Trade Area/Common Market for Eastern and Southern
Africa (COMESA) with a population of more than 600 million people hence a potential market
for poultry products. (TIC, 2018).
Investment opportunities exist along the value chain in the areas of: breeder farms, cross breed
chicken research and development, processing facilities including slaughter houses and cold
storage, animal feeds technology including processing and storage, farm infrastructures and
transportation.
Despite the market and investment opportunities the outbreak of Avian Influenza in the mid-
2000, has made importation of poultry and its products into mainland Tanzania to be banned.
However, since the Tanzanian border controls are not very efficiently controlled, illegal
importation of poultry meat is rampant. Tanzania currently export day old chicken (DOC) to
Comoro, Kenya and Uganda.

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Tanzania imports parent stock from different countries as the country lacks breeding programs
and facilities to feed the demand. Most hatcheries and poultry breeder farms operate within
residential areas without standard operating procedures. Unregistered themselves, they rarely
avail of services of registered veterinarians. The number of parent stock farms has been
moderately increasing but mostly are owned by hatchery facility operators and not specialized
breeder farms. Some new projects claim to have grandparent stock as well. This suggests a need
for potential investors to invest into poultry breeder farms. Also, investment in hatchery facilities
has been moderately increasing, thus, increase in production of DOCs. However, most of the
hatcheries are operating at only 45% of their installed capacity (Ringo, 2018). There is, however,
large importation of fertile eggs by the large hatcheries. The chart below shows importation of
parent fertilized eggs from different countries in euros for the last three years (2016 – 2018).
Due to limited, consistent supply of quality poultry products, Tanzania institutional consumers
(mining), food service (tourist/safari hotels) and retailers (supermarkets) import processed
poultry products from mainly from the USA, Brazil, the UAE, and Russia.
The potential of poultry sector in Tanzania therefore has remained untapped which opens
opportunities for investments to revamp the sector and related industries. The emerging
investmentopportunitiesalongthepoultryvaluechainandrelatedindustriesarehighlighted in Table 1.
Priority is based on analysis of all factors and input from key stakeholders.

Table1:Key areas for investment in poultry sector of Tanzania

Investmentarea Description Priority

Animal feed technologies (pelleting technologies, extrusionof soybeans,HIGH
other efficient feed processingtechnologies)
i l d Warehousing and grain silosmanagement HIGH
BreederFarms Breeding – crossbreed chicken Building on the on-going R&D byACGG

Producing parent and grandparentstock MEDIUM

HatcheryFarms Importing parent stock, grandparent stock, and at times fertilisedeggsMEDIUM
Producing and distributing day-old chicks(DOCs)
Integrated PoultryFarmsImporting parent stock, grandparent stock, and fertilisedeggs Producing and
(including, hatchery, productiondistribution of day-old chicks (DOCs) Production of broilers andlayers
&processing) Processing of poultry products Distribution of poultryproducts
MEDIUM
Third-Party logistics(3PL)Cold transportation and storage along the poultry foodchain This may
coldchain include a high care food grade processing facility Transportation
management and truckingsoftware HIGH
Processingfacility High care slaughterhouse designated forpoultry This should include coldHIGH
storagefacility
Supply ofpoultry equipmentFarm infrastructure including automated feeding and innovativewaste
and technologies management
HIGH
Animal feed processing technologies andequipment Transportation and
Source: E. J. Ringo and V.Mwenda (2018)

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8.0 Organization Structure
Mudo Poultry is a private business entity owned and managed by SONG JIANXIONG (36%),
CHEN MENGYAN (32%) and MAO XIAOJIANG (32%). Their aim at Mudo company limited
is to ensure that hired people are qualified, hardworking, creative, result driven, customer centric
and are ready to help build a prosperous business that will benefit key stake holders (the
owners, workforce, and customers).
Therefore profit-sharing arrangement will be made available to all our senior management staff
and it will base on their performance for a period of ten years or more. In view of the above,
organization structure look will be as below chart explain:

CEO

General Manager Chief Health and Chief Financial Chief Investment & Human Resource
Safety Officer Officer Engineering Officer Director

Section Supervisor
Production Procurement
Technical
Manager Officer
Excellence

Feed Miller Daily-Old-Chicks

Farm Manager Hatchery Manager Logistic Manager Engineers
Manager Manager

Hatchery Feed Miller

Farm Attendants DOC Sales Team Head IT
Attendants Attendants

Head Compliance,
Tax & Legal

9.0 Job Creation and opportunities

Mudo Poultry intend to produce 60-80 direct vacancies and 200 indirect vacancies. The aim is to
provide employment to local Tanzanians especially in the area surrounding the project and
personnel with the expertise.

10.0 Supply of Poultry Inputs

Poultry inputs are critical ingredients, which together enable poetry farm to make great products.
We at MUDO Poultry we are intend to use domestic raw materials by more than 65% of our
capital.
S/N ITEM QUANTITY UNIT ORIGIN
1. Chicken Cages 600 Set China
2. Feed Mill 1 Set China
3. Prefabricated Chicken House 6000 SQM China
4. Environmental Controlled System 12 Set China
5. Premix 60 Ton China
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S/N ITEM QUANTITY UNIT ORIGIN
6. Truck 4 5 Tones China
7. Parent Stock Chicks 60000 Pc Holland
8. Maize 800 Ton Tanzania
9. Other Raw Materials 800 Ton Tanzania
10. Feeders 2000 Pc Tanzania
11. Drinkers 2000 Pc Tanzania

11.0 SWOT Analysis

Mudo Poultry do not intend to launch out with trial and error hence the need to conduct a proper
SWOT analysis. We know that if we get it right from the onset, we would have succeeded in
creating the foundation that will help us build a standard poultry farm that will favorably
compete with other poultry companies in Tanzania.
We engaged the services of a core professional in the area of business consulting and structuring
to assist our organization in building a well – structured commercial poultry farm. Part of what
the team of business consultant did was to work with management in conducting a SWOT
analysis for Mudo Poultry farm Limited.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Mudo
Poultry Limited;

11.1 Strength:
Our strength as a commercial poultry farm is healthy relationships with other key stakeholders in
the poultry industry especially small poultry farmers who rely on commercial farming facilities
such as hatcheries to help them hatch their eggs.
We have some of the latest hatcheries, tools and equipment that will help us hatch and raise
chicks in commercial quantities with less stress. Aside from our relationship (network) and
equipment, we have experienced team specialized in poultry farming ready to service our
esteemed customers in poultry value chain.

11.2 Weakness:
Our weakness could be that we are a new poultry company in Tanzania, and perhaps it might
take us sometime to attract more potential customers. We are aware of this and from our
projection we will overcome this weakness with time and turn it to a major advantage for the
business.

11.3 Opportunities:
Most hatcheries and poultry breeder farms operate within residential areas without standard
procedures they are Unregistered and rarely avail of services from registered veterinarians.

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Unsurprisingly, many farmers complain that the high mortality rate among chicks in some
hatcheries is due to salmonellas and emergence of Mark’s disease in pellets (layers).
Table 2:Short profiles of selected poultry hatcheries and breeder farms inTanzania

Began day-old-chick and poultry feed production in 2014 for commercial and small-
scale chicken farmers in Tanzania
Silverlands Produce three DOC varieties with imported breeder stock
Iringa Exclusive rights in Tanzania for the SASSO bird
Provide improved genetics to small-scale rural farmer, technical assistance, training, and access to
Large

markets through African Poultry Multiplication Initiative programme

Taher OverseasLtd
Organia well-established poultryfarm
Dar esSalaam quality control feed sampling, sterilised vehicles, perimeter protection, automated feeding
systems, filtered air climate controlsystem
Large

also has Lark Distribution - a fleet of vehicles, intelligent automatedwarehousing

Nzua Enterprises
Growing and hatching Kuroiler and local chicken, turkeys, guinea fowls, rabbits and ducks
Medium

Dar esSalaam

Kilacha Kilacha Production and Training Center

Moshi Production of Daily old chicks
Mediu

Kilimanjaro Region
AKM Glitters Parent stock breeder farm for koroilers with patents rights as main supplier
Med

Dar esSalaam Poultry hatchery plant

Source: E. J. Ringo and V.Mwenda (2018)

Investment in hatchery facilities fore xample has been moderately increasing, thus, increase in
production of DOCs. However, most of the hatcheries are operating at only 45% of their
installed capacity. There is, however, large importation of fertile eggs by the large hatcheries.
Like elsewhere in East African countries, there is a shortage of DOC’s in Tanzania and there is a
seasonality both in availability and price that makes it difficult for farmers to plan ahead and
manage their costs. It is anticipated that the production of DOC’s will increase with time, due to
new investments in poultry breeding farms and hatcheries.

11.4 Threat:
Some of the threats and challenges that we are likely going to face are global economic
downturn, bad weather, natural disasters, unfavorable government policies and the arrival of
competitor (a commercial poultry farm) within the same location.

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12.0 Market Analysis
12.1 Market Trends
The technology that is used in poultry farming is greatly improved from when it first came into
the industry. In recent time, commercial poultry farm is now easier to operate, the technology is
much simple and you can predict the outcome with almost 100 percent accuracy.

12.2 Our Target Market

The target market of the commercial Mudo poultry farm will base on customer who benefit from
the value chain of the business such as small poultry farmers who demands to raise chickens in
their house holder yards and farms.

12.3 Our competitive advantage

Mudo Poultry is fully aware that there are competitions when it comes to operating poultry
farms, which is why we decided to carry out thorough market research to take advantage of the
available market in Tanzania.
We have done our homework and we have been able to highlight some factors that will give us
competitive advantage in the marketplace; some of the factors are effective and reliable egg
hatchery process that can help us hatch eggs at competitive prices, good network and excellent
relationship management.
Another competitive advantage that we are bringing to the industry is the fact that we have
healthy relationships with loads of small poultry farmers who don’t have their own hatcheries.
Aside from our relationship (network) and equipment, we can confidently boast that we have
some the most experienced hands in Tanzania regions under our payroll.

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13.0 Sales and Marketing Strategy
13.1 Sources of Income
Mudo Poultry is in the chicken egg hatchery line of business for the purpose of maximizing
profits hence we have decided to explore all the available opportunities within the industry to
achieve our corporate goals and objectives.
We will generate income by;
• Operating poultry hatcheries
• Raising and breeding chickens ( broilers and layers)
• Producing eggs from poultry for hatching and selling some to near few customers
• Processing of chickens
• Animal feed

13.2 Project Capacity and Sales Forecast

Going by the market research and survey conducted, we were able to discover that the sales
generated by the egg hatchery( DOC’S) business depend on the size of the business and of
course the size of their marketing network.
We have perfected our sales and marketing strategies, we are set to hit the ground running and
we are quite optimistic that we will meet or even surpass our set sales target of generating
enough income/profits from the first year of operation and build the business from survival to
sustainability with the shortest period of time.
We have been able to critically examine the Doc’s business, we have analyzed our chances in the
industry and we have been able to come up with the following sales forecast. The sales
projections are based on information gathered on the field and some workable assumptions as
well with respect to the nature of the business.
Fiscal Year Productions (DOC’s) Exp. Revenue (TZS)
1st 5,840,000 10,834,368,000
2nd 11,680,000 21,668,736,000
3rd 23,360,000 43,337,472,000
Total 40,880,000 75,840,576,000

N.B: This projection was done based on what is obtainable in the industry and with the
assumption that there won’t be any major economic meltdown that can impact negatively on
household spending, bad weather cum natural disasters, and unfavorable government policies.

13.3 Marketing Strategy and Sales Strategy

We are aware that the reason why some poultry businesses farms makes good profits is their
ability to attract small poultry farmers who are the major customers of such business. Our sales

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and marketing team will be recruited based on their vast experience in the poultry farms industry
and they will be trained on a regular basis so as to be well equipped to meet their targets.
In summary, Mudo Poultry will adopt the following strategies in marketing our services;
Introduce our business by sending introductory letters alongside our brochure to stake holders in
the poultry farms industry, small poultry farms and free range chicken farmers.

13.4 Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating
from must be ready and willing to utilize every available means to advertise and promote their
business. We intend growing our business which is why we have perfected plans to build our
brand via every available means.
Below are the platforms we will leverage on to boost our chicken egg hatchery brand and to
promote and advertise our business;
• Place adverts on community based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms to promote our business.
• Ensure that we position our banners and billboards in strategic positions all around major
cities and town in Tanzania
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our business in our official website and employ strategies that will help us pull
traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members wear our
branded shirt or cap at regular intervals.

13.5 Our Pricing Strategy

We will ensure that we peg the price for DOC’s based on what is obtainable in the industry; we
have also resolved to place our price a little bit below the industry’s average for the first 3
months of operation to attract new customers.

14.0 Our Payment Options

The payment policy adopted by Mudo Poultry is all inclusive because we are quite aware that
different customers prefer different payment options as it suits them but at the same time, we will
ensure that we abide by the financial rules and regulation of the United Republic of Tanzania.
Here are the payment options that Mudo Poultry will make available to her clients;
• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via cheque
• Payment via bank draft

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 • Payment via Mobile Money
In view of the above, we have chosen banking platforms that will enable our client make
payment for hatched eggs without any stress on their part. Our bank account numbers will be
made available on our website and promotional materials.

15.0 Startup Expenditure (Budget)

When calculating the cost of starting a commercial poultry farm business, there are some key
factors that should serve as a guide.
Besides, in setting up any business, the amount or cost will depend on the approach and scale
you want to undertake. If you intend to go big by renting/leasing a big facility, then you would
need a good amount of capital as you would need to ensure that your employees are well taken
care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any
difference in prices would be minimal and can be overlooked. As for the detailed cost analysis
for starting a poutry farm differ in other countries due to the value of their money.
Below are some of the basic areas we will spend our startup capital in setting up our chicken egg
hatchery business;
 The total fee for incorporating the Business in URT– TZS 2,000,000
 The amount needed to acquire/lease a farm land – TZS 45,000,000
 The amount required for preparing the farm land (poultry fencing et al) – TZS
40,000,000
 Legal expenses for obtaining licenses and permits as well as the accounting services
(software, P.O.S machines and other software) – TZS 7,000,000
 Marketing promotion expenses for the grand opening of Mudo Poultry in the amount
of TZS 10,000,000 and as well as flyer printing (2,000 flyers at TZS 1000 per copy) for
the total amount of TZS 2,000,000
 The total cost for hiring Business Consultant – TZS 7,000,000.
 The total cost for payment of insurance policy covers (general liability, workers’
compensation and property casualty) coverage at a total premium – TZS 15,000,000
 The amount required for the purchase of the first set of chicken eggs to be hatched – TZS
50,000,000
 The cost for the purchase of chick feed, medications and crates et al – TZS 25,000,000
 The cost for acquiring the required working tools and equipment – TZS 120,000,000
 Operational cost for the first 3 months (salaries of employees, payments of bills et al) –
TZS 130,000,000
 The Cost of Launching an official Website – TZS 2,000,000
 Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – TZS
5,000,000

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  Going by the report from detailed research and feasibility studies conducted, we will need
an average of TZS 460,000,000 to start a standard chicken egg hatchery business in
Tanzania.

16.0 Generating Startup Capital

No matter how fantastic your business idea might be, if you don’t have the required money to
finance the business, the business might not become a reality. Finance is a very important factor
when it comes to starting a hatchery poultry farm business.
Mudo Poultry is a private limited owned by three shareholders. They do not intend to welcome
any shareholders that are why we have decided to restrict the sourcing of the startup capital to
three major sources.
These are the areas we intend generating our startup capital;
• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from Banks

17.0 Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have the capacity and
competence of their employees, their investment strategy and the business structure. If all of
these factors are missing from a business, then it won’t be too long before the business closes
shop.
One of our major goals of starting Mudo Poultry is to build a business that will survive off its
own cash flow without the need for injecting finance from external sources once the business is
officially running. We know that one of the ways of gaining approval and winning customers
over is to hatch our eggs a little bit cheaper than what is obtainable in the market and we are
prepared to survive on lower profit margin for a while.
Mudo Poultry will make sure that the right foundation, structures and processes are put in place
to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to
drive our business to greater heights and training and re – training of our workforce is at the top
burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands
we can get in the industry; they will be more committed to help us build the business of our
dreams.

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18.0 Check List/Milestone
 Company Name Availability Check: Completed
 Company Registration: Completed
 Application for business license and permit: Completed
 Opening of Corporate Bank Accounts: Completed
 Securing Point of Sales (POS) Machines: Completed
 Opening Mobile Money Accounts: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: In Progress
 Purchase of Insurance for the Business: Completed
 Purchasing of farm land and building of standard hatcheries and poultry cages: In
Progress
 Conducting Feasibility Studies: Completed
 Generating capital from shareholders: Completed
 Applications for Loan from the bank: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: Completed
 Drafting of Contract Documents and other relevant Legal Documents: In Progress
 Design of The Company’s Logo: Completed
 Printing of Promotional Materials: In Progress
 Recruitment of employees: In Progress
 Creating Official Website for the Company: In Progress
 Creating Awareness for the business both online and around the community: In Progress
 Health and Safety and Fire Safety Arrangement (License): Secured
 Opening party/launching party planning: In Progress
 Establishing business relationship with vendors – key players in the industry such as
small poultry farmers and free range chicken farmers: In Progress

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